Your £700 Car Loan Payout is a SCAM - Here’s How Regulators Could Be Cheating You Out of £4 Billion
Millions of Drivers Face “Insulting” Payout in Car Loan Scandal
Millions of British drivers caught in the sprawling car loan scandal are on the verge of being short-changed by a staggering £4 billion, as consumer watchdogs and legal firms slam a proposed compensation plan as nothing short of an “insult.”
The City’s top regulator, the Financial Conduct Authority (FCA), has been accused of tabling a lowball offer that would slash the compensation owed to victims of mis-sold car finance deals.
The Heart of the Dispute: A Tale of Two Interest Rates
At the centre of the outrage is a bitter dispute over interest rates. The FCA has put forward a redress scheme that would add a meager 2.09% interest to compensation payouts for the 14 million unfair agreements identified. This figure has been blasted by claims firms and consumer groups who argue it’s a slap in the face to those who were wronged.
They are demanding that all victims receive the same terms as Marcus Johnson, a driver whose landmark Supreme Court victory set a crucial precedent. While his final settlement is confidential, industry experts widely believe he secured an interest rate of around 7% after judges ordered a fair “commercial rate” be negotiated. The FCA’s proposal doesn't even come close.
A £4 Billion Black Hole
The financial implications of this discrepancy are colossal. The FCA’s plan would see the average victim receive a payout of just £700. However, campaigners argue that if the proper, court-backed interest rate were applied, this figure would be significantly higher, leading to a total shortfall for consumers that could exceed a jaw-dropping £4 billion across the country.
The FCA now stands accused of creating a two-tier system of justice: one for the single driver who fought his way to the highest court, and a much less generous one for the millions of others who were similarly duped. Critics claim the regulator is protecting the banks from the true cost of the scandal, leaving ordinary people to pay the price.
As the battle lines are drawn, millions of drivers are left wondering if the compensation they were promised will ever truly reflect the financial harm they suffered. The fight for fair redress is far from over, with campaigners vowing to challenge the regulator’s “insulting” offer every step of the way.
